RBI Imposes Penalties on Five Financial Entities

Between 6th-8th August, 2024, Reserve Bank of India levied penalties totaling over Rs 2 crore on five entities, including CSB Bank and Union Bank of India, for failing to adhere to various regulatory guidelines.

CSB Bank has been fined Rs 1.86 crore for failing to comply with RBI's directions regarding 'Guidelines on Managing Risks and Code of Conduct in Outsourcing of Financial Services by banks' and 'Master Circular on Branch Authorisation.'
Union Bank of India has been penalized Rs 1.06 crore for not following regulations on 'Creation of a Central Repository of Large Common Exposures-Across Banks' and 'Know Your Customer (KYC)' norms.
Muthoot Housing Finance Company faces a fine of Rs 5 lakh for contravening provisions of the 'Non-Banking Financial Company - Housing Finance Company (Reserve Bank) Directions, 2021.'
Nido Home Finance Limited has been fined Rs 5 lakh for non-compliance with certain regulatory norms.
Ashoka Viniyoga Limited has been penalized Rs 3.1 lakh for failing to meet specific regulatory requirements.
The RBI clarified that the penalties reflect deficiencies in regulatory adherence and do not impact the validity of any transactions or agreements made by these entities.